Cisco exec says vehicle big data has a value of $1,400 per year

Article by Anita Panait, on August 10, 2013

Big data -- referring to a massive collection of data that has become difficult to process through traditional database tools and applications – has invaded the world of automotive. Andreas Mai, director of product management at Cisco Systems Inc., recently revealed that the big data generated by a connected car is worth a cumulative $1,400 annually per vehicle to the motorist, carmaker, society and service providers. How did he come up with such amount?

Around $550 is saved by the motorist through achieving better fuel economy, spending less time stuck in traffic, and getting lower insurance rates. Around $300 is saved by carmakers through lower warranty costs and profitable apps. Around $420 is saved by the society by employing car platoons to speed up traffic and increase a road's capacity. Around $150 can be earned by service providers by providing traffic guidance, navigation, parking as well as emergency services.

But Mai acknowledge some privacy issues involved with big data generated from cars, as there is a question of whether motorists would allow carmakers to use their vehicle data. Mai, however, believes that motorists would agree to share their data if they could gain from it, for instance, getting lower insurance rates if they share data with their insurer.

Mai said that a survey commissioned by Cisco showed that around 74 percent of motorists were willing to share vehicle data. But access to these data should be sorted out since it is likely that carmaker would share them with other company. Mai remarked that rules are needed on who owns that data, who is most likely the consumer, since he purchased the car.

If you liked the article, share on:

Pin It

Comments

Recommended

After making its debut at the Paris Motor Show last year as a concept car, the Trezor by Renault managed to bring home the 2016 Concept Car Design Of The...
by - March 23, 2017
We can already smell success for Opel, even if it had only recently inked its marriage with the PSA Group. The Insignia, being one of Opel’s best selling cars of...
by - March 23, 2017
The German automaker Volkswagen is now racing against time to come up with electric vehicles that will be able to pass Europe and China's stringent emission standard. The car company...
by - March 22, 2017
In the last few years, the advent of compact sedans and crossovers has become quite overwhelming. Even two of the major manufacturers that “started it all” have to admit that...
by - March 22, 2017
By 2020, Audi will be throwing out not just one but three fully-electric vehicles. One of which will be pitted against the BMW i8. This new information was revealed by...
by - March 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries